Source: PR Newswire
The new My-CHOICE™ Breach Response Expenses Amended endorsement allows policyholders to use their own trusted third-party vendors for breach response services, even if those vendors are not on the insurer’s pre-approved panel. This flexibility helps insureds avoid breaching existing contracts with service providers – reducing the risk of costly legal disputes at the worst possible time following a cyber incident.
“Most cyber insurance policies require insureds to only use the insurer’s approved panel of third-party service providers for breach response services,” said Kurt Suhs, CEO of Concierge Cyber. “The InsurePLUS insurance policy with our response endorsement is designed to give insureds greater control in responding and managing a cyber breach with their expert industry providers of choice.”
Most organizations have contractual relationships in place with their preferred vendors for critical functions like data backup, forensic investigation, and system restoration. This panel-only requirement can force insureds to breach those existing contracts, potentially triggering litigation from the displaced third-party vendors. In turn, such disputes may give rise to insurance agent E&O claims – especially if/when the agent failed to disclose or explain the panel restriction within the policy.
“Concierge Cyber InsurePLUS with the My-CHOICE endorsement gives insureds the flexibility to work with their preferred breach response firms – outside the insurer’s panel – subject to prior written consent. This endorsement aligns policyholder preferences with insurance requirements, helping reduce contractual conflicts, improve breach readiness, and protect agents from unnecessary E&O exposure,” Mr. Suhs noted.
